Joint development is a common business strategy wherein two or more parties agree to develop buildings (commercial/residential), hospitals, etc. It is a popular method of the development of a property.
In the real estate industry, an owner of a property and a developer or builder come together to enter into an agreement to develop a property jointly. This is when both parties enter into a joint development agreement that is beneficial to both.
In the JD agreement, the landowner provides the land that has the potential to generate huge monetary benefits while the developer focuses on developing the land. Here, the profit is shared in the percentage of the input/time devoted or expertise.
Communication and paperwork play a very important role in Joint Development. JD will continue to offer several benefits to both parties as long as they continue to cooperate with each other.